This is grossly fair
Editorial
IN HER usual frank and forthright style, Youth, Culture and Sports Minister, Ms. Gail Teixeira, has touched a raw nerve in society - the question of who pay and who do not pay taxes. During the 1999 budget debate in Parliament last week, she referred to the fact that while income tax and National Insurance Scheme (NIS) dues are automatically deducted from the pay of public servants, there are many enterprises and professionals operating in this country who do not pay NIS or have income tax deducted from their employees' earnings. Employees at state agencies and departments are also bound by these strict tax payment requirements. It is clear that far too many people (in most cases earning far more than employees in the government service) are dodging paying their share of the annual tax burden. We have commented on this unacceptable loophole before, noting that the Tax Commissioner has been regularly declaring that he was going after the dodgers. According to Minister Teixeira, dealing with the issue of revenue collection in her presentation to the budget debate, 43 per cent of all households in this country are headed by self-employed persons. A World Bank report of 1992 noted the majority do not pay NIS contributions and are not covered by NIS, and a small percentage pay income tax, she said. She said the issue of tax avoidance and tax evasion by very critical elements and personalities and agencies in the society has to be tackled. Also amazing is her announcement that some of those making millions through shows at the National Cultural Centre in Georgetown are not being taxed on the profits. We feel these are areas requiring some kind of pronouncement from the Tax Commissioner. The public was told not so long ago that the tax net was being widened to catch some really big dodgers. It seems, from what Ms. Teixeira reported last week, that some big ones are getting away and that the tax chief will have to tighten the squeeze a bit. Why should workers fighting to make ends meet with the little they earn each week, fortnight or month, have to meet their tax obligations and suffer penalties if they fail, and so many who are so relatively comfortably off, continue to make a mockery of appeals to meet their tax bills? This cannot be fair and we endorse the signal from Minister Teixeira that some steps are likely to tackle the culprits in her portfolio, including the copyright pirates. With this year's national budget now presented and with the statutory debate scheduled to be over soon, it would be good for the tax boss to consider a comprehensive public review of the state of play with dodgers and the revamped plans to ensure all eligible wage earners meet their tax obligations. This may help assure those paying their dues that it will not be too long before all are made to pay theirs too.
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